Saturday, May 15, 2010

Can the iPad or the Kindle save book publishers?

http://www.npr.org/templates/story/story.php?storyId=126196977

I still see a role for publishers in the future of the book business. They weed out books that should not be published. Publishers also bring their marketing skills to help introduce and sell their books to the public. Their value proposition to authors should be that they can put their books in as many places as possible in order to sell them. I don't know many authors who want to spend the time dealing with retailers and wholesalers in order to have their book on the market.

Publishers are not threatened. Their past level of profits may be threatened, but their role is still necessary. If people start to buy e-books in greater numbers than print versions, and the prices people are willing to pay come down, then publishers will have to figure out ways to deliver their services even though they are making less money. Print marketing campaigns may be replaced with cheaper online campaigns. Different ways of marketing books may also be explored.

With less money to go around because book sales are down overall, publishers need to be innovative if they want to stay in business. Someone is going to fill their role if they fail.

Amazon, Apple, and Google all have a vested interest in selling books. Although I don't believe the existence of those companies depends on how many books they sell. That being said, people are still buying books and none of the companies would turn their backs on the revenue in selling books to readers. The fighting about formats and containers to read the books is hurting everyone. Customers shouldn't be tied to one format or one company in order to buy a book. The iPad seems to take that into account, which is perhaps a strength for Apple and the iPad. I think customers will gravitate toward a device that doesn't make them think about where they need to buy their next e-book.

I think everyone mentioned in the podcast has a role. Publishers help select books worthy of publishing and leverage their brand of professional marketing. The retailers like Amazon and Apple have content to sell. The author alluded to the fact that Google can't depend on advertising dollars as much and may need the book sales as another revenue stream.

One problem I see with Google is that I believe people will have a hard time being charged by Google. People believe Google is free and I think Google will have a hard time convincing customers to pay them for anything. Thus, I think the more successful model is where the publishers continue to price the product where it must be in order to maximize sales.

I wonder if books will be priced by the chapter, like music is priced by the song. Pay for what you read when you read it versus paying for the entire book all at once. I like a pay as you go system.

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